World’s central banks to tackle technology with BIS innovation hub

Central banks grappling with fast-changing financial technology and companies like Facebook moving into finance will aim to work together more closely through an innovation hub approved on Sunday by the Bank for International Settlements.

The BIS said the intention of the hub, which will be based in Basel, Hong Kong and Singapore, is to improve the functioning of the global financial system and it will identify and develop insights into trends in technology affecting central banking.

Facebook’s plan to expand into payments and launch its own Libra cryptocurrency were not mentioned in the BIS statement, but the social media giant’s move has helped crystallize opinion among central bankers on the urgency of coordinating regulatory responses to financial technology trends.

“The IT revolution knows no borders and therefore has repercussions in multiple locations simultaneously,” BIS Chairman Jens Weidmann said in a statement following the decision to create the hub at a BIS board meeting.

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